Futures and Options trading is the trading in derivatives where the ‘contracts’ for the underlying asset are bought and sold. A ‘Futures’ is a contract to buy or sell an underlying asset at a fixed price at a specific time. Margin is the deposit or an amount of capital one needs to post or deposit to control/Own a futures contract.
If you buy an options contract, it grants you the right, but not the obligation to buy or sell an underlying asset at a set price on or before a certain date. A call option gives the holder the right to buy stock and a put option gives the holder the right to sell stock. An option premium is the income received by an investor who sells or “writes” an option contract to another party. An option premium may also refer to the current price of any specific option contract that has yet to expire. Premium is combination of Current price of asset and the time left for the expiry of the contract